-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, T9rRUqo9W+c2OS9Jr4hnkb7RElFAtgXt5GauHV9LLYlIitZeHhleE5NyfEU9vOEK +PVuChgJ9cakynonueysxw== 0000913760-96-000025.txt : 19960813 0000913760-96-000025.hdr.sgml : 19960813 ACCESSION NUMBER: 0000913760-96-000025 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960812 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTERNATIONAL ASSETS HOLDING CORP CENTRAL INDEX KEY: 0000913760 STANDARD INDUSTRIAL CLASSIFICATION: SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211] IRS NUMBER: 592921318 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 033-70334-A FILM NUMBER: 96608904 BUSINESS ADDRESS: STREET 1: 250 PARK AVENUE SOUTH STREET 2: SUITE 200 CITY: WINTER PARK STATE: FL ZIP: 32789 BUSINESS PHONE: 4076291400 MAIL ADDRESS: STREET 1: 250 PARK AVENUE SOUTH STREET 2: SUITE 200 CITY: WINTER PARK STATE: FL ZIP: 32789 10QSB 1 QUARTERLY REPORT U.S. Securities and Exchange Commission Washington D.C. 20549 Form 10-QSB [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1996 [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT Commission File Number 33-70334-A INTERNATIONAL ASSETS HOLDING CORPORATION (Exact name of small business issuer as specified in its charter) Delaware 59-2921318 - -------------------------------------------------------------------------------- (State or other jurisdiction of (IRS Employer Identification No.) incorporation or organization) 250 Park Avenue South, Suite 200 Winter Park, FL 32789 (Address of principal executive offices) (407) 629-1400 (Issuer's telephone number) NA - -------------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]. The number of shares outstanding of Common Stock was 1,454,087 as of July 22, 1996. Transitional small business disclosure format Yes [ ] No [X] 2 INDEX Page No. Part I. FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements Condensed Consolidated Balance Sheet at June 30, 1996 3 Condensed Consolidated Statements of Operations for the Nine Months ended June 30, 1996, and 1995 5 Condensed Consolidated Statements of Operations for the Three Months ended June 30, 1996, and 1995 6 Condensed Consolidated Statements of Cash Flows for the Nine Months ended June 30, 1996, and 1995 7 Notes to Condensed Consolidated Financial Statements 9 Item 2. Management's Discussion and Analysis or Plan of Operation 12 Part II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K 16 Signatures 19 3 INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheet June 30, 1996 (Unaudited) Assets Cash ............................................................ $ 362,559 Cash deposits with clearing broker .............................. 857,668 Foreign currency deposits with clearing broker .................. 27,174 Short term investments .......................................... 1,495,336 Receivable from clearing broker ................................. 444,841 Receivable from affiliated company .............................. 28,645 Other receivables ............................................... 73,439 Securities owned, at market value ............................... 2,982,843 Deferred income tax benefit ..................................... 24,122 Property and equipment, at cost: Leasehold improvements ..................................... 40,404 Furniture and equipment .................................... 594,662 ---------- 635,066 Less accumulated depreciation and amortization .................. 311,879 ---------- Net property and equipment ......................... 323,187 Other assets, net of accumulated amortization of $35,500 ........ 193,895 ========== $6,813,709 ========== See accompanying notes to condensed consolidated financial statements. 4 INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheet June 30, 1996 (Unaudited) Liabilities and Stockholders' Equity Liabilities: Securities sold, but not yet purchased, at market value ........ $ 615,009 Accounts payable ............................................... 88,625 Accrued salaries, commissions and benefits ..................... 700,392 Other accrued expenses ......................................... 136,287 Income taxes payable ........................................... 125,828 Deferred income taxes .......................................... 12,618 Other .......................................................... 7,526 ---------- Total liabilities ...................................... 1,686,285 ---------- Stockholders' equity: Preferred stock, $.01 par value. Authorized 1,000,000 shares; issued and outstanding -0- shares .................... -- Common stock, $.01 par value. Authorized 3,000,000 shares; issued and outstanding 1,454,287 shares .............. 14,543 Additional paid-in capital ..................................... 3,256,339 Retained earnings .............................................. 1,856,542 --------- Total stockholders' equity ............................. 5,127,424 =============== $6,813,709 =============== See accompanying notes to condensed consolidated financial statements. 5 INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Operations For the Nine Months Ended June 30, 1996, and 1995 (Unaudited) 1996 1995 Revenues: Commissions ................................... $6,594,941 5,177,382 Net dealer inventory and investment gains ..... 1,783,535 1,067,472 Other revenue ................................. 466,295 363,318 ---------- ---------- Total revenues ........................ 8,844,771 6,608,172 ---------- ---------- Expenses: Commissions and clearing fees .................. 3,666,213 2,979,302 Employees compensation and benefits ............ 1,906,807 1,282,200 Communications and promotions .................. 1,286,638 1,080,496 Other operating expenses ....................... 979,334 799,277 --------- --------- Total expenses ......................... 7,838,992 6,141,275 --------- --------- Income before income taxes ............... 1,005,779 466,897 Income tax expense ....................... 408,754 204,312 ---------- ---------- Net income ............................... $ 597,025 262,585 ========== ========== Earnings per common and dilutive common equivalent share: Primary: $ .326 .180 Fully diluted: $ .326 .180 Weighted average number of common and dilutive common equivalent shares outstanding: Primary 2,155,527 1,461,674 Fully diluted 2,155,527 1,461,674 See accompanying notes to condensed consolidated financial statements. 6 INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Operations For the Three Months Ended June 30, 1996, and 1995 (Unaudited) 1996 1995 Revenues: Commissions .................................... $2,109,340 2,068,275 Net dealer inventory and investment gains ...... 547,970 368,256 Other revenue .................................. 184,335 169,743 ---------- ---------- Total revenues ........................... 2,841,645 2,606,274 ---------- ---------- Expenses: Commissions and clearing fees .................. 1,171,382 1,150,333 Employees compensation and benefits ............ 634,599 463,326 Communications and promotions .................. 420,591 377,684 Other operating expenses ....................... 354,487 318,862 --------- --------- Total expenses ........................ 2,581,059 2,310,205 --------- --------- Income before income taxes ................... 260,586 296,069 Income tax expense ........................... 105,247 116,823 -------- -------- Net Income ................................... $ 155,339 179,246 ======== ======== Earnings per common and dilutive common equivalent share: Primary: $ .086 .108 Fully diluted: $ .086 .108 Weighted average number of common and dilutive common equivalent shares outstanding: Primary 2,226,133 2,010,666 Fully diluted 2,226,133 2,010,666 See accompanying notes to condensed consolidated financial statements. 7 INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows For the Nine Months Ended June 30, 1996, and 1995 (Unaudited)
1996 1995 Cash flows from operating activities: Net income $ 597,025 262,585 Adjustments to reconcile net income to net cash used for operating activities: Net amortization and appreciation of short-term investments (70,758) (60,052) Loss on disposal of property and equipment 145 - Depreciation and amortization 91,946 62,741 Deferred income taxes 3,184 (19,034) Cash provided by (used for) changes in: Receivable from clearing broker (292,107) (38,414) Receivable from affiliated company 12,127 (10,546) Other receivables 49,463 16,104 Securities owned (983,747) (402,858) Other assets (30,012) (345) Payable to clearing broker - (573,394) Securities sold, but not yet purchased 199,305 184,785 Accounts payable (8,182) 58,644 Accrued salaries, commissions and benefits 29,432 (83,128) Other accrued expenses (29,569) 14,532 Income taxes payable (43,430) (221,104) Other liabilities 135 139 --------------- --------------- Net cash used for operating activities (475,188) (809,200) --------------- --------------- Cash flows from investing activities: Disposal of short-term investments 7,729,000 2,919,000 Acquisition of short-term investments (7,393,001) (2,928,016) Acquisition of property, equipment & other assets (191,192) (83,530) Proceeds from disposal of furniture and equipment - 35 Repayments of loan to Employee Stock Ownership Plan - 54,000 --------------- --------------- Net cash provided by (used for) investing activities 144,807 (38,511) --------------- --------------- (continued)
See accompanying notes to condensed consolidated financial statements. 8 INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows, Continued
1996 1995 Cash flows from financing activities: Acquisition of common shares for repurchase plan (27,089) - Acquisition of redeemable common shares for treasury - (21,435) --------------- --------------- Net cash used for financing activities (27,089) (21,435) --------------- --------------- Net decrease in cash (357,470) (869,146) Cash and cash equivalents at beginning of period 1,604,871 2,010,266 --------------- --------------- Cash and cash equivalents at end of period $ 1,247,401 1,141,120 =============== =============== Supplemental disclosure of cash flow information: Cash paid for interest $ 5,897 4,605 =============== =============== Income taxes paid $ 449,000 444,450 =============== ===============
Noncash financing activities: During December, 1994, the Company retired treasury stock with a cost of $21,435 representing 4,513 shares of the Company's common stock. The retirement of the treasury stock has been recorded as a reduction of common stock and retained earnings. See accompanying notes to condensed consolidated financial statements. 9 INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements June 30, 1996, and 1995 (1) Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions and requirements of Form 10-QSB and, therefore, do not include all information and footnotes necessary for a fair presentation of financial position, results of operations, and cash flows in conformity with generally accepted accounting principles. In the opinion of Management, such financial statements reflect all adjustments necessary for a fair statement of the results of operations, cash flows and financial position for the interim periods presented. Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year. It is suggested that these condensed consolidated financial statements be read in conjunction with the Company's audited consolidated financial statements for the year ending September 30, 1995, filed on Form 10-KSB and Amendment No. 1 to Form 10-KSB (SEC File Number 33-70334-A). As used in this Form 10-QSB, the term "Company" refers, unless the context requires otherwise, to International Assets Holding Corporation and its five wholly owned subsidiaries; International Assets Advisory Corp. ("IAAC"), Global Assets Advisors, Inc. ("GAA"), International Financial Products, Inc. ("IFP"), GlobalNet Securities, Inc. ("GNSI") and International Asset Management Corp. ("IAMC"). (2) Securities Owned and Sold, But Not Yet Purchased Marketable securities owned and sold, but not yet purchased at June 30, 1996, consist of trading and investment securities at quoted market values as follows:
Sold, but not Owned yet purchased Obligation of U.S. Government $ 1,047,404 - Common stock and American Depository Receipts 738,768 615,009 Unit Investment Trusts 1,075,391 - Corporate debt securities 110,339 - Foreign government obligations 10,941 - $ 2,982,843 615,009
10 INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements, continued (3) Amendment to Stock Option Plan On December 28, 1995, the Company's Board of Directors approved an amendment effective December 28, 1995, to the International Assets Holding Corporation Stock Option Plan (the "Plan") and approved its submission to the shareholders for their approval. The amendment received shareholder approval at the annual meeting of stockholders on February 15, 1996. The Plan was initially adopted by the Board of Directors on January 23, 1993, and approved by the shareholders on November 10, 1993. The amendment to the Plan increased the number of shares available for issuance under the Plan from 250,000 to 500,000 shares. As of June 30, 1996, 425,000 option shares are granted and outstanding under the Plan. (4) Earnings Per Common Share Primary and fully diluted earnings per common and dilutive common equivalent share for the three months ended June 30, 1996, and June 30, 1995, and for the nine months ended June 30, 1996, have been computed by dividing adjusted net income by the weighted average number of common and dilutive common equivalent shares outstanding. Common equivalent shares represent shares of common stock issuable upon the assumed exercise of stock options and warrants. Common equivalent shares had an antidilutive effect on the earnings per share computation for the nine months ended June 30, 1995. (5) Leases The Company is obligated under various noncancelable operating leases for the rental of its office facilities and certain office equipment. Rent expense associated with operating leases amounted to $219,822 and $201,030 for the nine months ended June 30, 1996, and 1995, respectively. The minimum lease payments under noncancelable operating leases as of June 30, 1996, are as follows: Fiscal Year (12 month period) Ending September 30, 1996 $ 296,433 1997 279,676 1998 265,247 1999 258,937 2000 105,532 Thereafter -- $1,205,825 11 INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements, continued (6) Stock Repurchase Program On March 13, 1996, the Company announced that the Board of Directors has authorized the Company to repurchase up to $500,000 of its common stock in the open market during the remainder of the fiscal year which ends September 30, 1996. The stock purchases will be made in the open market from time to time as market conditions permit. The Company is required to comply with Rule 10b-18 of the Securities and Exchange Commission which regulates the specific terms in which shares may be repurchased. As of July 22, 1996, the Company has repurchased 6,800 shares under this repurchase program. (7) Redeemable Common Stock The Company has an Employee Stock Ownership Plan ("ESOP") with 357,714 unregistered common shares and 3,000 registered common shares. All registered and unregistered shares have been allocated to ESOP participants as of June 30, 1996. In the event of termination of employment of an ESOP participant, the Company may be obligated to issue a put option to a terminated participant which may require the Company to redeem, within 60 days of issuance of the put option, the participants' vested shares of the Company's common stock. Pursuant to the ESOP the redemption price of the put option will be the current fair market value as of the date of the issuance of the put option. If a put option is required to be issued, it shall be issued as soon as administratively practicable following the close of the plan year in which the participant terminated employment. The plan year for the ESOP is the calendar year. As of June 30, 1996, there are approximately 19,600 vested shares allocated to participants that terminated employment during the 1996 plan year. If the Company's shares distributed to a participant are registered and tradable on an established securities market, the Company is not required to provide a put option to the participant. The Company is in the process of preparing a registration statement for the unregistered shares held by the ESOP. It is currently anticipated that this registration process will be completed before the end of the 1996 calendar year end. It is also anticipated that the 19,600 vested shares allocated to terminated participants will be registered before the end of the ESOP plan year. The Company believes that it will not be required to issue put options for these shares. 12 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION. The Company's assets have increased from $6,101,325 at September 30, 1995, to $6,813,709 at June 30, 1996, and the Company's liabilities increased from $1,543,837 at September 30, 1995, to $1,686,285 at June 30, 1996. The increase in the net assets (assets less liabilities) of $569,936 primarily relates to the net income earned for the nine month fiscal period. The Company's condensed consolidated balance sheet at June 30, 1996, reflects a receivable from clearing broker, for trades which had not yet settled for cash, due to the proceeds from the sale of securities exceeding the cost of securities purchased. Results of Operations: Nine Months Ended June 30, 1996, as Compared to the Nine Months Ended June 30, 1995 The earnings of the Company are subject to wide fluctuations since many factors over which the Company has little or no control, particularly the overall volume of trading and the volatility and general level of market prices, may significantly affect its operations. The Company's revenues are derived primarily from commissions earned on the sale of securities and trading income in securities purchased or sold for the Company's account. For the nine months ended June 30, 1996, and 1995, approximately 75% and 78%, respectively, of the Company's revenues were derived from commissions earned on the sale of securities. For the nine months ended June 30, 1996, and 1995, approximately 20% and 16%, respectively, of the Company's total revenues were from net dealer inventory and investment gains (trading revenue). Total revenues increased by approximately 34% for the nine months ended June 30, 1996, as compared to the nine months ended June 30, 1995, despite a slight decrease in the average number of account executives from 41, as of June 30, 1995, to 40, as of June 30, 1996, or a decrease of approximately 2%. The increase in total revenues is attributable to the successful efforts of our sales staff and trading department. During the nine months ended June 30, 1996, the average dollar amount of retail trades increased 5% and the overall volume of customer ticket orders increased 21%, as compared to the nine months ended June 30, 1995. Commission revenue increased approximately 27% while net dealer inventory and investment gains (trading revenue) increased approximately 67% for the nine months ended June 30, 1996, as compared to the nine months ended June 30, 1995. The increase in trading revenue is primarily attributable to substantial increases in the Company's wholesale trading and retail trading activities. The 13 Company's trading department primarily concentrates on global securities which it believes are likely to be traded by the Company's clients. By focusing on these types of securities, trading revenue is more directly related to commission revenue and order flow. Other revenues increased approximately 28% during the nine months ended June 30, 1996, as compared to the nine months ended June 30, 1995. The increase in other revenue during the nine months ended June 30, 1996, is partially due to an increase in interest earned on short and long term U.S. government securities held by the Company, fees for money management and sales of other financial products. The major expenses incurred by the Company relate to employees' compensation and benefits, direct costs of securities operations such as commissions and clearing fees, and communications and promotions expense. Total expenses increased by approximately 28% for the nine months ended June 30, 1996, as compared to the same period in 1995. This increase is primarily attributable to increases in commissions and clearing fees, employee compensation and benefits, communications and promotions and other operating expenses. Commissions and clearing expenses increased approximately 23% during the nine months ended June 30, 1996, as compared to the same period in 1995. This increase is directly related to the increased commission revenue and increased trading activity. Employee compensation and benefits expense rose approximately $625,000, or 49%, during the nine months ended June 30, 1996, as compared to the nine months ended June 30, 1995. Approximately $300,000 of the increase in employee compensation and benefits is due to increases in performance based bonus accruals, based on the increase in income before income taxes and trading revenue by the Company, during the nine months ended June 30, 1996, as compared to the nine months ended June 30, 1995. Approximately $259,000 of the increase in employee compensation is due to additional employees hired by the company and the remaining approximate $66,000 is due to increases in the cost of benefits and other compensation. Overall promotion and communication expenses increased 19% primarily due to additional total personnel and increased promotional activities during the nine months ended June 30, 1996, as compared to the nine months ended June 30, 1995. Other operating expenses increased approximately $180,000, or 23%, during the nine months ended June 30, 1996, as compared to the nine months ended June 30, 1995. This increase is partially attributable to an increase in rent of approximately $38,000 related to the Company's expansion of office space, an increase in leased equipment and maintenance expense of approximately $25,000, an increase in insurance expense of approximately $12,000 and an increase of approximately $29,000 in amortization and depreciation expense. As a result of the above, income before income taxes has increased by approximately $539,000, or 115%, during the nine months ended June 30, 1996, as 14 compared to the nine months ended June 30, 1995. The Company's effective income tax rate was approximately 41% and 44% for the nine months ended June 30, 1996, and 1995, respectively. Three Months Ended June 30, 1996, as Compared to the Three Months Ended June 30, 1995 For the three months ended June 30, 1996, and 1995, approximately 74% and 79%, respectively, of the Company's revenues were derived from commissions earned on the sale of securities. For the three months ended June 30, 1996, and 1995, approximately 19% and 14%, respectively, of the Company's total revenues were from net dealer inventory and investment gains (trading revenue). Total revenues increased by approximately 9% for the three months ended June 30, 1996, as compared to the three months ended June 30, 1995. The average number of account executives for both the quarter ending June 30, 1996, and June 30, 1995, was 39. The increase in total revenues is attributable to the successful efforts of our sales staff and trading department. During the three months ended June 30, 1996, the average dollar amount of retail trades decreased 8% while the overall volume of customer ticket orders increased 10%, as compared to the three months ended June 30, 1995. Commission revenue increased approximately 2% while net dealer inventory and investment gains (trading revenue) increased approximately 49% for the three months ended June 30, 1996, as compared to the three months ended June 30, 1995. The increase in trading revenue is primarily attributable to increases in the Company's wholesale trading and retail trading activities. The Company's trading department primarily concentrates on global securities which it believes are likely to be traded by the Company's clients. By focusing on these types of securities, trading revenue is more directly related to commission revenue and order flow. Other revenues increased by approximately 9% during the three months ended June 30, 1996, as compared to the three months ended June 30, 1995. The major expenses incurred by the Company relate to employee compensation and benefits, direct costs of securities operations such as commissions and clearing fees, and communications and promotions expense. Total expenses increased by approximately 12% for the three months ended June 30, 1996, as compared to the same period in 1995. This increase is primarily attributable to increases in commissions and clearing fees, employees compensation and benefits, communications and promotions and other operating expenses. Commissions and clearing expenses increased approximately 2% during the three months ended June 30, 1996, as compared to the same period in 1995. This increase is directly related to the increased commission revenue and increased 15 trading activity. Employee compensation and benefits expense rose approximately $171,000, or 37%, during the three months ended June 30, 1996, as compared to the three months ended June 30, 1995. Approximately $28,000 of the increase in employee compensation and benefits is due to increases in performance based bonus accruals, based on the increase in trading revenue by the Company, during the three months ended June 30, 1996, as compared to the three months ended June 30, 1995. Approximately $101,000 of the increase in employee compensation is due to additional employees hired by the company and the remaining approximate $42,000 is due to increases in the cost of benefits and other compensation. Overall promotion and communication expenses increased 11% primarily due to additional total personnel and increased promotional activities during the three months ended June 30, 1996, as compared to the three months ended June 30, 1995. Other operating expenses increased approximately 11% during the three months ended June 30, 1996, as compared to the three months ended June 30, 1995. This increase is primarily attributable to an increase in rent related to the Company's expansion of office space, an increase in leased equipment and maintenance and an increase in amortization and depreciation expense. As a result of the above, income before income taxes has decreased by approximately $35,000, or 12%, during the three months ended June 30, 1996, as compared to the three months ended June 30, 1995. The Company's effective income tax rate was approximately 40% and 39% for the three months ended June 30, 1996, and 1995, respectively. Liquidity and Capital Resources A substantial portion of the Company's assets are liquid. At June 30, 1996, approximately 84% of the Company's assets consisted of cash, cash equivalents, and marketable securities. All assets are financed by the Company's equity capital, short-term borrowings from securities lending transactions and other payables. IAAC is subject to the requirements of the SEC and the NASD relating to liquidity and net capital levels. At June 30, 1996, IAAC had net capital of approximately $1,597,000, which was approximately $1,497,000 in excess of its minimum net capital requirement at that date. In the opinion of management, the Company's existing capital and cash flow from operations will be adequate to meet the Company's capital needs for at least the next 12 months in light of known and reasonably estimated trends. In addition, management believes that the Company will be able to obtain additional short or medium-term financing that may be desirable in the ordinary conduct of its business. The Company has no plans for additional financing and there can be no assurance such financing will be available. 16 PART II ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K a). Exhibits 11. Computation of Earnings Per Share (Page 17 and 18 attached) b). Form 8-K No reports were filed on Form 8-K during the three months ended June 30, 1996. 17 INTERNATIONAL ASSETS HOLDING CORPORATION STATEMENT OF COMPUTATION OF EARNINGS PER SHARE For the Nine Months Ended June 30, 1996, and 1995
1996 1995 (1) Adjustment of shares outstanding: Weighted average number of actual common shares outstanding ... 1,459,756 1,461,674 Weighted average number of additional common shares outstanding assuming the exercise of common stock equivalents (2) .... 695,771 -- Weighted average number of common and dilutive ========== ========== common equivalent shares outstanding ..................... 2,155,527 1,461,674 ========== ========== Adjustment of net income: Actual net income ............................................. $ 597,025 $ 262,585 Adjustment to net income assuming the investment of excess proceeds received from the assumed exercise of common stock equivalents, net of income taxes $ 104,728 -- ======== ======== Adjusted net income ........................................... $ 701,753 $ 262,585 ======== ======== Earnings per common and dilutive common equivalent share: Primary: ......... $ .326 $ .180 Fully diluted (3): $ .326 $ .180
- -------------------------------------------------------------------------------- (1) In 1995, the common stock equivalents (common stock warrants and common stock options) are antidilutive, therefore, no common stock equivalents are assumed to be exercised. (2) This calculation assumes that of all the additional common shares outstanding, assuming the exercise of all common stock equivalents, 290,857 shares of common stock are re-acquired as of the beginning of the 1996 fiscal year. (3) In 1996, there were no other potentially dilutive securities present other than the common stock equivalents (common stock warrants and common stock options), therefore, primary and fully diluted earnings per share amounts are the same. 18 INTERNATIONAL ASSETS HOLDING CORPORATION STATEMENT OF COMPUTATION OF EARNINGS PER SHARE For the Three Months Ended June 30, 1996, and 1995
1996 1995 Adjustment of shares outstanding: Weighted average number of actual common shares outstanding ... 1,457,534 1,460,887 Weighted average number of additional common shares outstanding assuming the exercise of common stock equivalents (1) .... 768,599 549,779 Weighted average number of common and dilutive ========= ========= common equivalent shares outstanding ..................... 2,226,133 2,010,666 ========= ========= Adjustment of net income: Actual net income ............................................. $155,339 $179,246 Adjustment to net income assuming the investment of excess proceeds received from the assumed exercise of common stock equivalents, net of income taxes $ 36,508 $ 37,204 ======== ======== Adjusted net income ........................................... $191,847 $216,450 ======== ======== Earnings per common and dilutive common equivalent share: Primary: $.086 $.108 Fully diluted (2): $.086 $.108
- -------------------------------------------------------------------------------- (1) This calculation assumes that of all the additional common shares outstanding, assuming the exercise of all common stock equivalents, 290,857 shares of common stock are re-acquired as of the beginning of the 1996 fiscal quarter and 292,177 shares are re-acquired as of the beginning of the 1995 fiscal quarter. (2) In 1996 and 1995 there were no other potentially dilutive securities present other than the common stock equivalents (common stock warrants and common stock options), therefore, primary and fully diluted earnings per share amounts are the same. 19 Signatures In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. INTERNATIONAL ASSETS HOLDING CORPORATION Date 08/09/96 /s/ Jerome F. Miceli Jerome F. Miceli President and Chief Operating Officer Date 08/09/96 /s/ Jonathan C. Hinz Jonathan C. Hinz Chief Accounting Office EX-27 2 FDS FOR 10QSB
BD 1 9-MOS SEP-30-1996 JUN-30-1996 1,247,401 546,925 0 0 4,478,179 323,187 6,813,709 0 914,845 0 0 615,009 0 0 0 14,543 5,112,881 6,813,709 1,783,535 206,671 6,594,941 0 138,070 5,897 4,724,075 1,005,779 1,005,779 0 0 597,025 .326 .326
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